Proposed new rates of excise duty on beer
On April 1, 2026, the Government of Canada announced a proposed amendment to the Excise Act.
Based on this proposed amendment, the annual adjustment to the rates of excise duty on beer would remain capped at 2% for 2 years. Also, the rates of excise duty on the first 15,000 hectolitres of beer brewed in Canada would remain cut by half for 2 years.
This proposed amendment would only change the rates in effect as of April 1, 2026, for the first 15,000 hectolitres of beer brewed in Canada. All other rates have already been adjusted by 2%.
Effective April 1, 2026, you may report and remit excise duty on beer at the lower rates.
However, if you choose to pay the duty using the proposed new rates, you will be required to pay the difference in applicable duty if the legislation is not enacted by Parliament.
The proposed adjusted rates of excise duty on beer are:
| Product | Proposed rate effective April 1, 2026 |
|---|---|
| Beer containing not more than 1.2% absolute ethyl alcohol by volume | $3.128 per hectolitre |
| Beer containing more than 1.2% but not more than 2.5% absolute ethyl alcohol by volume | $18.85 per hectolitre |
| Beer containing more than 2.5% absolute ethyl alcohol by volume | $37.69 per hectolitre |
| Percentage of absolute ethyl alcohol by volume in product | Annual production volume increments | Proposed rate effective April 1, 2026 |
|---|---|---|
| Not more than 1.2% | 0 to 2,000 hectolitres | $0.1564 per hectolitre |
| Not more than 1.2% | 2,001 to 5,000 hectolitres | $0.3128 per hectolitre |
| Not more than 1.2% | 5,001 to 15,000 hectolitres | $0.6256 per hectolitre |
| Not more than 1.2% | 15,001 to 50,000 hectolitres | $2.1896 per hectolitre |
| Not more than 1.2% | 50,001 to 75,000 hectolitres | $2.6588 per hectolitre |
| More than 1.2% but not more than 2.5% | 0 to 2,000 hectolitres | $0.943 per hectolitre |
| More than 1.2% but not more than 2.5% | 2,001 to 5,000 hectolitres | $1.885 per hectolitre |
| More than 1.2% but not more than 2.5% | 5,001 to 15,000 hectolitres | $3.770 per hectolitre |
| More than 1.2% but not more than 2.5% | 15,001 to 50,000 hectolitres | $13.195 per hectolitre |
| More than 1.2% but not more than 2.5% | 50,001 to 75,000 hectolitres | $16.023 per hectolitre |
| More than 2.5% | 0 to 2,000 hectolitres | $1.8845 per hectolitre |
| More than 2.5% | 2,001 to 5,000 hectolitres | $3.769 per hectolitre |
| More than 2.5% | 5,001 to 15,000 hectolitres | $7.538 per hectolitre |
| More than 2.5% | 15,001 to 50,000 hectolitres | $26.383 per hectolitre |
| More than 2.5% | 50,001 to 75,000 hectolitres | $32.037 per hectolitre |